When investing in coffee companies, knowing the different types of coffee, where they are located, and their worth on the market can be the difference between making a profit or losing your money. This is because not all coffees were created equal.
There still are some smaller coffee companies that produce some of the better coffees on the market; most of the big names are part of larger corporations that are very stable. A good example of this is the brand Maxwell House, which is the largest coffee manufacturer in America. This is part of the Kraft food empire that also puts out Jacobs Coffee, Gevalia, Kenco, General Foods International, Sanka and Tassimo. The stock ticker for this company is KFT. While the past few years has not been kind to Kraft, with losses 3 out of the last 5 years, this year the profits are already above last year’s level. The YTD return is at 7.4% and the Wall Street recommendation is a buy as of the beginning of June.
Café Bom Dia is one of the smaller coffee companies that is owned by the Marques de Paiva family. All of the beans from this coffee are part of a network that includes Rainforest Alliance certified coffee; they are a part of the Fair Trade agreement and certified Organic. Unfortunately, this is a private company that does not allow investment like a majority of the other smaller ones.
JM Smuckers is the corporation behind the second largest coffee manufacturer in America which is Folgers. The other coffee this corporation manufactures is Millstone, Dunkin Donuts, and Kava. The stock ticker is SJM. While the stock’s performance is down so far this year at -10.1%, 3 out of the past 5 years have been profitable. Folgers is a recent acquisition of this corporation from Proctor and Gamble which should help the bottom line.
But as you can see, investing in coffee companies that are strictly coffee manufacturers is difficult. The only thing that is for certain, if you know how to make coffee, is what you like and prefer. Invest only after you investigate the company and not which coffee you decide to drink the most.
For additional resources on coffee, please see Silex Vacuum Brewers.
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